Billionaire investor Mark Cuban supports Reddit stock traders

Mark Cuban has shown support for the daring Reddit traders who shook up Wall Street by applying a 'pro-gamer move' and making a nifty profit at the same time.

It will always be the haves vs the have nots. Not everyone worked as hard as you did to earn their spot, most have no appreciation for humble beginnings and hard work. The masses dont play with hard-earned money, unless there is a chance to change ones status.

— Lauren (@stanlle) January 30, 2021

In his blog post, the billionaire investor criticized an outdated Wall Street that 'has not changed much in generations.'

He said:

"This generation doesn't care what Old School Wall Street thinks or says about valuations. They have learned from their experiences watching Wall Street go up and down and making people who aren't them a ton of money. It's a game designed to reward the people with the most money. That all these narratives are just sales pitches designed to sell stocks, and they want to change the game and kick their ass."

Mark Cuban also critiqued the SEC, stating that it needed to introduce rules that are easily understandable by the masses and be more accessible to all traders.

He quoted:

"Last time I asked them (SEC) a question, they sent me to a page that asked me to FAX 8 copies of my request."

If you want to see how useless the SEC is for small investors and traders, get someone in your office to call the SEC to ask a question about anything. Last time I did it a few years ago they sent me to a page that asked me to FAX 8 copies of my request. That’s the SEC

— Mark Cuban (@mcuban) January 30, 2021

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Mark Cuban's take on 'wallstreetbets'

'Wallstreetbets' will go down in the annals of history for exploiting the very system that Wall Street used to get rich. The group even bought a billboard in Times Square to commemorate the achievement.

Times Square go brrrCourtesy of /u/SomeGuyInDeutschland pic.twitter.com/glvOWYL4sY

— wallstreetbets mod (@wsbmod) January 30, 2021

The unexpected move of buying GameStop's stock rather than selling them led to short-sellers and hedge funds losing over $70 billion.

Hedge funds are complaining about losing billions on GameStop, which means it’s a good time to invest in whatever company makes the world’s tiniest violins.

— Stephen Colbert (@StephenAtHome) January 29, 2021

Mark Cuban also said:

"They know that the more they work together, the less power Wall Street has. They know that fat and happy Wall Street has become slow, stale, and set in their ways, making them an easy target. As a group, these Redditors can target any hedge fund, any stock, any time, for any reason and change the game."

But if individual traders educate each other and use their combined strength to focus on good companies , with strong prospects, the power shifts from wall street to main street, particularly now that Direct Listings are changing the IPO game. Thoughts ? Comments ?

— Mark Cuban (@mcuban) January 29, 2021

Readers can read his blog post here: The Mark Cuban Weblog.

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The Future of GameStop

While Mark Cuban and others have come out in support of GameStop's stock surge due to Redditors, the shares fell more than 30% on Monday.

GameStop shares shorted fall by over half in week -- S3 Partners https://t.co/3iufuHNPsa pic.twitter.com/pu8WbK7kxs

— Reuters (@Reuters) February 1, 2021

Robinhood continues to limit the buying/trading of GameStop's stocks despite facing a class-action lawsuit. The company has even narrowed down the trade options to just eight companies from its portfolio of 50.

New robinhood limits 🤡$AMC - 25 shares$BB - 25 shares$EXPR - 200 shares$GME - 2 shares$KOSS - 10 shares$NAKD - 300 shares$NOK - 50 shares$SNDL - 1200 shares

— Gurgavin Chandhoke (@gurgavin) January 31, 2021

Currently, the trading app only allows clients to buy 20 shares of GameStop. If the user already owns 20 shares, they can't purchase further shares.

Robinhood's dominance with those looking to have fun with the stockmarket has been waning since 2019. The GameStop saga could speed up that decline https://t.co/MQPkC77SFo

— The Economist (@TheEconomist) February 2, 2021

Following the trend, it's still unclear how much longer the surge will sustain, with many traders selling shares for a quick profit.

Perhaps 'wallstreetbets' can pull off another miracle, rallying the masses to buy more shares, but as of now, GameStop's stock is down from a staggering $469 to a mere $225 at the moment.

GameStop’s stock hasn’t crashed yet, it’s still hovering around $25bn valuation. Now I’m in my mind palace imagining a future where it ends up in the S&P 500 index, is stabilized by more investment from index funds, and just becomes, by sheer mechanical force, a major company.

— Jathan Sadowski (@jathansadowski) February 1, 2021

Mark Cuban's words may have inspired others to 'kick their (Wall Street's) a**,' but the giants of the game are now better prepared and ready for Reddit to make its next move.